CABS interim profits decline

Published: 14 August 2017

Mortgage lender, CABS profit for the half year to June 30, 2017 amounted $16 million, which was 20 percent lower than $20 million reported in the same period last year.

The decline was on the back of high operating expenses that rose 13 percent to $33 million while impairment charges also rose to $2, 9 million compared to a reversal of impairments of $1, 6 million were loans the bank had previously provided for were recovered.

The bank carried out various projects to enhance service delivery inclusive of expansion of the point of sale terminal network, core banking system upgrade, branch refurbishments and staff training programmes.

Net interest income for the period under review rose by 7, 2 percent to $29 million.Non-interest income increased by 9, 9 percent due to higher transaction volumes through the bank's digital channels.

Deposits rose to $855 million from $768 million. Loans and advances were 11, 5 percent higher to $594 million.

CABS' total assets as at the end of the six months in review were at $1, 08 billion from $990 million during the same period last year.